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View Diary: Obama, Dems press Boehner on ending oil and gas subsidies (72 comments)

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  •  While I agree with ending the subsidies (5+ / 0-)

    doing so will only lead to higher prices at the pump, as the oil companies say they need to make up lost revenue.

    Better in my mind - and in anticipation of what I predict will be record 1st quarter profits reported by the oil companies in the next week or so - is to enact a retro-active windfall profits tax.

    The politics can't be more easy - when Americans see how much profit the companies made while they watch their household budgets get hammered by rising fuel prices, it should be simple to fire up calls for a tax to claw back the money.

    Form follows function -- Louis Sullivan

    by Spud1 on Tue Apr 26, 2011 at 01:38:56 PM PDT

    •  Excellent!n/t (1+ / 0-)
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    •  not true... (3+ / 0-)

      Are you saying that gas is @4$ because of these subsidies? meaning that without them it would have been at $6? I don't think so...

      "When fascism comes to America, it will be wrapped in a flag and carrying a cross." Sinclair Lewis, 1935 --Talk of foresight--

      by tuma on Tue Apr 26, 2011 at 01:54:25 PM PDT

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      •  I agree. (1+ / 0-)
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        Most of the recent spike we've seen is due to unrest in the mideast and speculators -- the oil companies just get to sit there and make the profit.

        Oil subsidies don't really affect the price of a barrel of crude; they affect how much in taxes the companies pay, and they can well afford it.

        They just don't want to.

      •  No, I'm not saying that at all (0+ / 0-)

        I'm saying that if the subsidies are eliminated, they will lead to increased prices, as the oil companies will use any excuse to further raise them.

        Gas is a dollar more a gallon at the pump than a year ago. IMHO, it's mostly due to speculation. If I am correct and companies report huge profit increases, this will mean that while costs to produce fuel have remained flat or increased little, money derived from sales has skyrocketed.

        Form follows function -- Louis Sullivan

        by Spud1 on Tue Apr 26, 2011 at 08:47:43 PM PDT

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    •  Oil is an internationally traded commodity (1+ / 0-)
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      and the price at the pump reflects that. This is why "drill baby drill" will not work as it will add no more than 3% to the World oil supply (unless the Rethugs propose complete State ownership of all US oil companies and then ignore International markets).

    •  Rising gas prices no reason to keep subsidies (1+ / 0-)
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      From a  free market perspective, by subsidizing energy prices we're preventing the market's magical hand form working its mojo.

      From an ecological perspective, subsidizing energy prices encourages over consumption of a resource that causes pollution and global warming.

      From an economic perspective, subsidies encourage us to use a resource that has to be imported, weakening our dollar.

      The only winner here is energy companies.  Everyone else, liberal or conservative, should be 100 percent behind killing these subsidies.

      If you're worried that poor folk won't be able to afford gas, let's have a gas stamp program, just like food stamps.  That should be about as easy to pass as a windfall profit tax.

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